Research On Working Capital Management Of Gree Electric Appliances

Working capital is the strongest and most dynamic part of corporate assets.Efficient management and fast turnover of working capital can ensure that enterprises in the all aspects of supply,production,sales of have a smooth convergence,so as to ensure continuing and stable development of business.At present,the working capital shortage of Chinese home-appliance manufacturing corporations have an great influence on its development speed.Therefore,in order to strength the financial management of the home-appliance manufacturing enterprise will play a crucial role in the survival and development of enterprises,especially for strengthening the management of working capital.In this paper,based on the review of literatures at home and abroad,using literature method,narrative method and comparison method,based on the elements and channels of two aspects of working capital management performance evaluation system,we carry on the comparison and analysis for the Gree electric appliances and Qingdao Haier working capital,and from the aspects of management system and mechanism,business models,we have a deep insight into the differences of electrical manufacturing working capital management,and have the following conclusions,from the perspective based on elements of working capital management performance,Gree electric appliances inventory turnover period 2010-2014 were higher than that of Qingdao Haier.From the performance perspective,based on sources of working capital management Gree electric appliances and Qingdao Haier purchasing channel turnover period of working capital is negative,indicates that raw materials inventory and prepaid account capital takes up less than the accounts payable and notes payable capital takes up,namely,Gree electric appliances and Qingdao Haier will occupy the upstream supplier's money,2010-2015 channels of Gree electric appliances production capital turnover performance significantly lagged behind the Qingdao Haier,and in addition to the 2013,Gree electric appliances marketing channel of working capital turnover period is longer than Qingdao Haier,from the channel perspective,Gree electric appliances Qingdao Haier is better than the overall level of working capital management.Through in-depth analysis,we find that in the development of Gree electric appliances at the same time,there is still a low turnover period of working capital,occupies upstream suppliers,severe cash accounts payable turnover period is longer,affect the relationships with suppliers,the mode of production defects result in resource waste or excessive inventory,the problem,such as the threat of marketing mode,aiming at these problems,we put forward the following suggestions: strengthen the information sharing with suppliers,to speed up the purchasing channel capital turnover,in order to strengthen the management of suppliers,to establish a good strategic cooperative relations,scientific mode of production,improve production efficiency,and supplier jointly managed inventory,improve the efficiency of collecting payment,electricity marketing model.Hoping this paper can produce certain reference function for Gree electric appliances improving working capital management.